The process of transforming a foreign-funded enterprise into a domestic-funded enterprise;

1. The proposed issuer holds a shareholders' meeting on equity transfer and forms a resolution. The acquirer respectively signs transfer agreements with foreign shareholders;

2. Apply to the competent foreign trade department where the issuer is located for approval;

3. Go through the change registration with the industrial and commercial department;

4. The proposed issuer shall register the change of foreign exchange with the State Administration of Foreign Exchange. The purchaser applies for the purchase and payment of foreign exchange and remits the equity transfer money abroad;

5. Within 30 days from the date when the industrial and commercial department handles the change registration, it shall apply to the original tax registration authority for the change of tax registration with relevant documents.

Second, analyze the details

Domestic-funded enterprises are enterprises invested by state-owned assets, collective assets and domestic personal assets. Foreign investors of foreign-invested enterprises may be foreign enterprises, other economic organizations and individuals. Foreign-invested enterprises were established in China according to the laws of China, so they are different from foreign enterprises and other domestic economic branches.

3. What is the difference between foreign-funded enterprises and domestic-funded enterprises in income tax collection?

There is no difference between foreign-funded enterprises and domestic-funded enterprises in setting tax rates. The main difference is that foreign-funded enterprises enjoy preferential income tax, usually two exemptions and three reductions. That is, from the profit-making year, foreign-funded enterprises are exempted from enterprise income tax for the first two years and levied enterprise income tax by half for the next three years, but domestic-funded enterprises cannot enjoy the above preferential treatment, so the tax of foreign-funded enterprises is too favorable. The income tax rates of foreign-invested enterprises and foreign enterprises are 30%, 24%, 15% respectively, and the local income tax rate of 3% is basically the same as that of domestic-funded enterprises, but there are some differences in the choice of taxpayers.